J. MILLARD TAWES, Governor                        877

(3) Unless otherwise agreed after a revocable credit is established
it may be modified or revoked by the issuer without notice to or
consent from the customer or beneficiary.

(4) Notwithstanding any modification or revocation of a revocable
credit any person authorized to honor or negotiate under the terms
of the original credit is entitled to reimbursement for or honor of
any draft or demand for payment duly honored or negotiated before
receipt of notice of the modification or revocation and the issuer in
turn is entitled to reimbursement from its customer.

5—107. Advice of Credit; Confirmation; Error in Statement of
Terms.

(1)   Unless otherwise specified an advising bank by advising a
credit issued by another bank does not assume any obligation to honor
drafts drawn or demands for payment made under the credit but it
does assume obligation for the accuracy of its own statement.

(2)  A confirming bank by confirming a credit becomes directly
obligated on the credit to the extent of its confirmation as though it
were its issuer and acquires the rights of an issuer.

(3)  Even though an advising bank incorrectly advises the terms
of a credit it has been authorized to advise the credit is established
as against the issuer to the extent of its original terms.

(4) Unless otherwise specified the customer bears as against the
issuer all risks of transmission and reasonable translation or inter-
pretation of any message relating to a credit.

5—108. "Notation Credit"; Exhaustion of Credit.

(1)  A credit which specifies that any person purchasing or paying
drafts drawn or demands for payment made under it must note the
amount of the draft or demand on the letter or advice of credit is a
"notation credit."

(2)   Under a notation credit

(a)  a person paying the beneficiary or purchasing a draft or
demand for payment from him acquires a right to honor only if the
appropriate notation is made and by transferring or forwarding for
honor the documents under the credit such a person warrants to the
issuer that the notation has been made; and

(b)  unless the credit or a signed statement that an appropriate
notation has been made accompanies the draft or demand for pay-
ment the issuer may delay honor until evidence of notation has been
procured which is satisfactory to it but its obligation and that of its
customer continue for a reasonable time not exceeding thirty days
to obtain such evidence.

(3)  If the credit is not a notation credit

(a)  the issuer may honor complying drafts or demands for pay-
ment presented to it in the order in which they are presented and is
discharged pro tanto by honor of any such draft or demand;

(b)  as between competing good faith purchasers of complying
drafts or demands the person first purchasing has priority over a